Member Info for Skindle

Please can you keep the post to RR news. Boring.

Just copying a recent post from Peteevans, to Peteevans !

Hi Arsenal17, the share price in August 18 was over 1100 pence for a while but I didn’t want to use this figure to magnify the loss. I accept that you have been investing for as long as RR have been listed as a PLC and I am sure you have been able to work your investment into your lifestyle. You are very opposed to selling your shares in RR but had you done so in August 2018, as most long term holders should have (including me), then you would be significantly better off than you are today. There is no certainty that investing today at current levels is sensible, indeed, the share price could halve again before we realise the bottom of the trough. In my opinion, I cannot see a reason to invest in RR long term because I am not certain we have reached the bottom of the trough and there is no dividend for the foreseeable future. I sold my shares on the 10th December 2019 at 710 pence at a painful loss but I thank the lord that I acted when I did. Mr East is an excellent chief executive but he is still clearing up the mess from the previous incumbents. On the 28th February 2020, I finally decided that Mr East had got on top of all the legacy issues that were left on his desk when he assumed office in 2015, only to be confronted headlong by the worst disruption to all types of business since World War Two. RR will survive, but as investors we are only worried about how low the share price will drop before it finally and confidently heads north. My guess is that the days following the release of the half year results in early August might signal the low point of the trough. That might be an opportune moment to invest. I admire your loyalty and commitment but that doesn’t pay for the mortgage and the weekly grocery shop, not to mention a decent holiday abroad. It might also be worth keeping in mind that the company are in the process of clearing out the older more expensive engineers to save money, and of course they have cancelled the dividend to shareholders. Loyalty to employees and shareholders is therefore not at the top of the company priority list when push comes to shove. In conclusion, you are so deep in the hole now that you might as well wait until normality returns. As for 1100 pence, one can only dream.

There is no doubt that long term investment in blue chip companies is sensible but if you look back three years this week the RR share price was 892 pence. Five years ago the share price was 981 pence. Using long term shareholder Arsenal17 as an example, this investor has lost sixty seven per cent of value over five years and now the annual dividend payment. Where is the logic in long term investment ? Currently RR is a buy at 250 pence and a sell at 420 pence.

As of 2020-06-08, ROLLS-ROYCE HOLDINGS PLC is now shorted at 0.52% by DSAM PARTNERS LLP.

This is in addition to Sandbar Asset Management who still hold a 0.73% short position dating back to the 14th May.

Mystic1076, I must compliment you on your prediction of the movement of the RR share price. In recent times you have been spot on. Maybe you can truly predict the future.

Talentless1, my name is SKINDLE !! Two attempts, both incorrect !

I posted that Reuter’s report for your benefit because you yourself complained that the board had not issued a response to the downgrade. The report clearly shows that the board immediately issued a response statement.

I will not take advice or instruction from someone who four days ago did not know that Rolls Royce Holdings PLC and Rolls Royce Motors are entirely separate companies.

I suggest you carry out much more research before offering any further opinion.

LONDON (Reuters) - Ratings agency Standard & Poor’s cut engine maker Rolls-Royce’s (RR.L) credit rating to junk on Thursday, citing the disruption caused to global air travel from the COVID-19 pandemic.

S&P cut its rating for the British company to “BB” from “BBB-“, below investment-grade.

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“Actions to contain the pandemic, including government-imposed social-distancing measures, travel restrictions, and stay-at-home orders, have suddenly and sharply reduced global demand for air travel,” S&P said in a statement.

In response, Rolls-Royce said it had taken swift action to boost its liquidity and cut costs to deal with the short-term impact of the health crisis.

“While it is disappointing to lose our investment grade rating with S&P, none of our borrowing facilities contain covenants or credit rating triggers that demand early repayment nor do any of our contracts with airlines,” the company said in a statement.

A big thank you from all investors for your professional insight into the mysterious and complex world of equities, presented clearly in an honest straight forward fashion, every post has been first class. Just a small observation on your comments concerning a trading update. The company don’t normally release a trading update in July, the half year results are normally released in the first week of August. Many thanks again for sharing your years of professional knowledge with us.

https://www.fitchratings.com/research/corporate-finance/rolls-royce-reorganisation-aids-flexibility-uncertainty-prevails-21-05-2020

Critically, no directors buying shares so far today to endorse the statement. Looking back, the last time any of the directors made significant purchases was back in August 2019.

Finally, a trading statement. Quite upbeat given the circumstances.

Well, at least the board of directors are still meeting, (at a distance of two metres) which provides some comfort. August 2020 would seem somewhat optimistic for the completion of the sale of Findel Education given the CMA has taken over four months to enter phase one of the approval process. I am disappointed that the board has chosen not to update the market further as to trading. Why not ?

Hello 1GW_. I have not re invested in STU simply because the board have entirely removed themselves from the current global crisis. In my mind each and every one of the board have put their fingers in their ears and closed their eyes in the hope that by the final results day in June all will have returned to normal. I would be very surprised if revenue is not adversely affected in February and March partly as a result of supply chain issues. We are proceeding towards a post CV world that will be significantly different from what we became used to. Furthermore, will the buyers of Findel Education take this opportunity to re negotiate the purchase price ? What was reasonable value pre CV, suddenly looks very expensive in the post CV world. Someone has clearly been acquiring shares in recent days hence the rise but this doesn’t necessarily mean that good news is imminent. The last trading update was the half year results on the 16th December, global business has changed immeasurably since then. Let’s hope the next update is good news but I wouldn’t be surprised if it is bad.

Given the recent fairly positive company RNS and the subsequent rally from 250 pence to 350 pence. Could I ask our chartists please whether the share price has broken back above critical support levels. Do you think the Moody’s downgrade will negative affect the share price in the coming weeks ? I am no chartist and would appreciate some advice as to which way this is likely to go.

My sentiments entirely Pyueck although I suggested a rights issue which you corrected. Good post, thanks for your thoughts.

The board urgently need to provide clarity on the financial position of the business and either refute or confirm whether a rights issue is going to be necessary. On the upside, a prominent Norwegian hedge fund have just announced the purchase of five per cent of RR shares which is a vote of confidence in the future of the business.

Good enough for me Arsenal17 !

Arsenal17 sometimes struggles grammatically but probably knows more about RR than all us posters put together. As an ex employee this investor possesses a greater knowledge of how this business operates than most others. Equally, my research suggests that Norrab1 is also a very well informed investor. Rather than abuse each other, you both have lots to bring to this discussion board. Please respect what each poster/investor has to say.
There is not one single business in this country, large and small that won’t be affected by what is currently going on. The RR share price in my opinion is likely to go down before it goes up again but that only provides further opportunity. The challenge is finding the low point which is not zero pence as FRTEB recently suggested. The number crunchers on this board will no doubt already have calculated the asset/cash value of the business less debt. Sadly I’m not one of those number crunchers so I am merely taking a guess.

Crikey Pokerchips, for an investor who had placed long term bets for May and beyond, you lasted half a day !

Our government will not want the control of RR fall into the wrong hands. At what point is there likely to be some kind of intervention ?